Assets make money and liabilities cost you money.
Urban Life

How To Earn Money With Assets And Decrease Liabilities

Good evening my fellow urbanites. Tonight I want to talk about how we spend way too much money. If so I can relate, because I’m guilty of it myself. There’s been many times when I’ve made an impulse buy, or paid extra for features that I didn’t need.

 

Do You Have Any Friends Or Family Who Always Seem To Be Wealthier And Happier Than You?

Have you ever had a friend or family member that always seem to have more money than everyone else that you know? Do they work fewer hours than you. Always smiling with no visible signs of stress? Did they even retire early, making you wonder how they did it, and even jealous. DON’T YOU WISH YOU KNEW WHAT THEIR SECRET WAS?

 

There’s A Reason Why Some People Have More Money Than The Rest Of Us Even Though They Make Less

There’s a reason why these people are happier and wealthier than us, and it’s not just about how much they make. They do things that the rest of us don’t. ARE YOU READY TO HEAR THIS? What I’m about to say is going to be painful to some, but you need to hear it. I wish someone would have told me this years ago, because I would have definitely started saving much sooner.

 

You see, we live in a country of overspending. We buy the mansion sized house that we can’t afford and don’t need, when we would have been better off with the smaller, more practical one. That luxury car with all the bells and whistles, calls our name at the dealership, and we can’t resist. Our houses are packed with movie theatre sized televisions, and entertainment systems that need taking out a loan to afford. Credit cards get maxed out, and our savings dwindle as we spend our way to happiness.

 

If Only We All Would Spend Less And Save More, Including Myself

If only we all would spend less and save more, many of us would not only be able to work fewer hours, but also retire earlier. Imagine not having to commute to work anymore in bad weather. Or answer to an angry miserable boss. WOULDN’T THAT BE NICE?

 

I’LL TELL YOU THE THINGS THAT HAVE SAVED ME! Fortunately I live in a practical sized house that’s all paid off. There’s no mortgage to worry about or rent. Also, I don’t own a car and instead prefer to take the bus or bicycle everywhere I go.

 

I’ve learned not to use my credit card to buy the things I need or want. If I can’t afford to buy what I need, I’ll just save until I can. This is a good strategy because I’m not spending money before I make it. There’s no need for me to use the credit card, and get stuck paying high interest rates. It has taken great discipline, but I’ve learned to buy according to needs, not wants.

 

Some Great Money Making Posts

I’ve Made Many Financial Mistakes By Buying Unnecessary Luxuries That I Didn’t Need

I’m in no way a financial guru, and still have a lot to learn. And I’ve made plenty of foolish mistakes in the past.

 

I’ve spent way too much on clothes, food, vacations and bicycles. Instead of buying things that will make me money, I was just spending.

 

We Can All Learn From Others Who Are More Financially Secure Than Us, Including The Millionaires

Many millionaires will tell us to buy assets, not liabilities. What’s the difference?

 

Watch this video down below from Dan Lok, and then maybe you’ll have a better idea.

 

Use Assets To Buy Liabilities

Add up all the money we spend on luxuries, and you will see why many of us are broke. As Dan Lok says, it’s okay to spend money on liabilities. Many millionaires buy luxury items that give no RETURN ON INVESTMENT(ROI).

 

The difference between the millionaires and the poor is that they buy assets first. And then they use those assets to buy what they want.

 

I’ve Committed Many Financial Sins

I’m not going to lie and say that I haven’t committed these financial sins myself. If anything I’m probably more guilty of them than most of you reading this.

 

I know that I can’t go back to the past and change the mistakes that I’ve made. All I can do now is move on with the future and make better financial decisions.

 

Smart Decisions I Can Make To Be More Financially Secure In The Future

Every week I can take the money that I earn to Save for early retirement. Right now I automatically have $30 withdrawn from my earnings each week and put into my savings.

 

I can put as much money as possible into my savings to have a nest egg, in case of emergencies. When ever I can, I’ll transfer money from my checking account to my savings. Usually in the amount of $50.

 

Or I can invest in assets that will earn me money, instead of liabilities that will cause me to go broke. Taking money out of my check each week before taxes, and putting into my 401k, has definitely added up over the last decade.

 

I’m not sure what assets I will invest in yet because I’m no expert, but I will take the time to learn as I go along.

 

And about that bus? The bus isn’t fancy or luxurious, but it does save me a ton of money. On average, taking the bus each week has saved me over $4,000 each year.

 

One day I might be able to take that small fortune I’m saving from taking the bus, and invest it into some awesome assets. This Blog could be one of them. OH WAIT, IT ALREADY IS!!!!!

 

Would you rather save money, or spend the extra for luxury and convenience? Do you invest in liabilities? And if so, which ones? What financial mistakes have you made?

 

Let’s Have A Little Recap Here

  • Only buy what your budget allows.
  • Save money for early retirement.
  • Millionaires fund liabilities with assets.
  • Assets make money.
  • Liabilities cost money.
  • Save more, spend less.
  • Don’t make purchases based on impulses.
  • Never make purchases with the credit card when you don’t have the money saved.

Check Out These Other Great Posts Before You Leave

Do You Have Any Financial Tips Of Your Own? Let Me Know….

 

Don’t forget to comment and subscribe below.

 

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